GEORGE TOWN – The head of the Penang Water Supply Corporation Sdn Bhd (PBAPP) has called on the federal government to consider subsiding the production of water in every state to ensure that its supply is affordable and sustainable for all consumers.
PBAPP chief executive officer Datuk Jaseni Maidinsa said that water production costs are not included in the country’s projected consumption subsidy expenditure of RM77.3 billion and also not contained in Budget 2022, which has an allocation of RM332.1 billion.
The costs of related aspects such as treatment and channelling of water are left to the respective state water authorities to bear.
However, with each passing year, operating costs have risen while water catchment resources have depleted due to occurrences like development and climate change, he said.
Speaking in an interview, Jaseni said that while the federal government has not sanctioned any move to raise tariffs, it would be better to consider allocating some subsidies to help maintain the production costs.
He urged MPs to raise the matter in the Dewan Rakyat, saying that water security needs to be addressed swiftly, as many states are struggling to maintain quality service and to locate new resources.
Recently, Penang was hit by an unprecedented water disruption when muddied waters from the Gunung Inas upstream flooding in Baling, Kedah, flowed into the main intake and treatment plant of PBAPP at Sg Dua in Butterworth.
PBAPP was forced to halt production for four days, causing supply to be disrupted for the majority of its water consumers in the state.
Some households, particularly in Balik Pulau, suffered water cuts for up to five days.
“The RM77.3 billion subsidy expenditure can include (subsidies for) consumer necessities such as cooking oil, petrol, electricity, and others. But not water?
“Even the RM332.1 billion Budget 2022 allocation, which has an allocation for the Covid-19 fund, did not include subsidies for water operators in the country,” he said.
Since Putrajaya has decided to maintain the electricity and water tariffs in the peninsula, it should also give a subsidy to the Penang water operator just as it has allocated for Tenaga Nasional Bhd, Jaseni proposed.
“The subsidy should be based on the differential amount between the tariff review we may get and the current tariff,” he stressed.
Jaseni also underscored the importance of having a secure and consistent level of water supply.
“Without water, you cannot drive the economy. How are the hotels and factories going to operate without water?” he said.
“One of the main reasons that Penang was able to recover quickly from the lockdowns was because we have a good water supply.” – The Vibes, July 18, 2022
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